FARMING AS A BUSINESS MODEL 1

Every business first thrives on proper planning. The same it is for farming as a business model. It should be looked beyond just providing food for the populace, but as a venture that needs continuity and sustainability. 

One cannot rule out the fact that an enabling environment needs to be created for business to thrive, howbeit; there are chances of agricultural produce thriving irrespective of unforeseen policies. Take for instance the propagation of cocoa by farmers in Ondo state, cultivation of watermelon by women in Abeokuta, to mention but a few. These businesses however little in capacity are thriving.

One of the major challenges faced is the articulation of these ventures into a bankable business model that requires adequate financing, proper logistic processes and marketability. Every agric business is bankable and marketable; the major challenge is the proper understanding by the financial institution how this venture operates.

In the agric business model, acceptability may not be much of a problem, as everyone must eat one way or the other. Sustainability has always been the challenge. This is also caused by inconsistency in policies handed over as well as its continuity. Farmers all over the nation have learnt to adopt and adapt to policies of the present day, the result of change in governance has often resulted to changes in practice models by these farmers and this has affected their productivity.

Risk Variation

Just like any other business model, it has also got its risk, ranging from preservation to processing. This may have been attributed to poor infrastructure, such as good roads, storage facilities, and lack of ingenuity. It would amaze you to know the amount of water melon, plantain, bananas, oranges that lie wasted in the dumps of Ketu and Mile 12 markets in Lagos.

Again one would want to say and encourage the springing up of agro-allied industries, which could embrace the processing of these foods. Such attempts are been greeted with high cost of taxes and power generation rate. Seen the reality of these agro industrial challenges could discourage any would be industrial investor. In this light, the growth of that sector becomes inimical, there by affecting large scale production by the farmer.

Risk/Profit analysis

Farmers would want to reduce their risks if shown the way, as no one would like to see his produce getting spoilt. The quickest way this could be achieved is by giving incentives to industries that have these produce as part of their value chain.

From the farmers point of view, the encouragement they need is the assurance that their produce will be bought. A case scenario where the agro allied industry invests directly in the farmers produce will help to keep both the farmer and the firm in business. There are some firms that have adopted this farmer/ business model approach and have favoured them considerably.

From the view of the agric industrialist, it’s all about the value chain, from the farmers view, its all about sales and income. The marriage of these two factors will help to put both parties on the profitability scale. Only then can continuity be possible and sustainability embraced.